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In reply to the discussion: OWS to Buy, Forgive Distressed Consumer Debt [View all]dixiegrrrrl
(60,010 posts)71. Canceled Debts.... for any of the following exceptions or exclusions are not taxable"
"The exclusion for "qualified principal residence indebtedness," provides canceled debt tax relief for many American home owners involved in the mortgage foreclosure crisis currently affecting much of the country. The exclusion allows taxpayers to exclude up to $2,000,000 ($1,000,000 if married filing separately) of "qualified principal residence indebtedness".
say the IRS link.
http://www.irs.gov/taxtopics/tc431.html
The OP mentions that OWS plans involved talking to the IRS, so I feel safe in assuming they know to present the loan forgiveness in a way that does not harm the recipient.
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K&R This is a model for success. Hopefully it will catch on and rich people will start funding it.
Egalitarian Thug
Nov 2012
#9
I they forgive the debt, do the debtors have to pay income tax on the amount forgiven?
djean111
Nov 2012
#15
Canceled Debts.... for any of the following exceptions or exclusions are not taxable"
dixiegrrrrl
Nov 2012
#71
Wow. This is one of the best grassroots ideas I've heard in a very long time.
distantearlywarning
Nov 2012
#16
K&R. Publsihed to my Facebook network this a.m. One question: who decides
coalition_unwilling
Nov 2012
#17
Yep. Once again, the MSM lies spread far and wide to discredit progressives.
Dark n Stormy Knight
Nov 2012
#94
The people of OWS are AWESOME! They are tenacious, caring, determined, smart and love this country
judesedit
Nov 2012
#26
It's neither 'earthshattering' nor 'brilliant'. It is, however, a 'great' idea.
randome
Nov 2012
#86
Hypberbole does not help dismiss the organizations you have always wanted to dismiss.
sabrina 1
Nov 2012
#127
I think that's great. Possibly the most constructive thing I've heard from OWS. nt
msanthrope
Nov 2012
#47
So what would happen if a person bought their own debt for pennies on the dollar???
ret5hd
Nov 2012
#52
Zorra, you nailed it - it's truly a soul-sucking experience to be mired in debt.
groundloop
Nov 2012
#119
This is the best stimulus package I have seen in this whole mess. I am one of those distressed
jwirr
Nov 2012
#76
By the time your debt gets cheap, you've already been screwed to the equator and back n/t
Mopar151
Nov 2012
#144
So what's to stop me from setting up a shell corporation, racking up a bunch of personal debt
ChillZilla
Nov 2012
#93
Cool. This is great for collection agencies, brings them some revenue they might not
jtuck004
Nov 2012
#96
If we just step back and look at this as helping the country full of citizens,
djean111
Nov 2012
#101